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Suspected NZ gunman charged with murder

Nick Perry

A man suspected of killing two unemployment-office workers and seriously wounding a third in a New Zealand town has been charged with murder.

John Tully was arrested on Monday evening following a seven-hour manhunt that kept a South Island town on edge.

Tully made his first court appearance on Tuesday on two charges of murder and one of attempted murder. He did not enter a plea and remained in custody.

Last month he told the Ashburton Guardian that he had previously worked in Australian mines, had returned to his hometown and had ended up living in a tent after being unable to secure government-assisted accommodation.

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Police spokeswoman Lisa-Marie Brooks said a police dog unit apprehended Tully, 48, near a lake following an extensive manhunt in the town of Ashburton.

She said Tully was being treated for minor dog-bite injuries and police were still searching for the weapon used in the shootings.

Earlier, police urged residents to remain inside their homes as they searched an area near the town's river and stormed a house that turned out to be empty.

Tully had been interviewed in recent weeks by the local newspaper about his struggles finding somewhere to live and had also written to lawmakers.

The incident began about 10 am on Monday when police said a man entered a Work and Income New Zealand office and started shooting.

A witness said the man was wearing a black balaclava and shot at two women, according to the Ashburton Guardian newspaper. Other witnesses told the paper the man was carrying a shotgun that may have been sawed down and fled on a bicycle.

Ministry of Social Development Chief Executive Brendan Boyle said all three victims worked for the agency.

"We are all devastated by the deaths of two of our colleagues in the shocking attack," Boyle said in a statement, adding "our thoughts and prayers" are also with the third victim who was being treated at an area hospital.

Winston Peters, leader of the New Zealand First party, said in a statement that Tully had emailed his political party on August 14 about the difficulty of finding a house to live in.